Money Exchange: Buying a Yacht Abroad

April 10th, 2012

Buying a yacht in Europe can be a daunting task, with all the different regulations and tax issues, but money exchange need not be an issue. While generally speaking a yacht broker will be able to help guide you through the yacht buying process, when it comes to transferring your currency to the beneficiary in their local currency it is best to consult a professional. These specialists secure the best exchange rate pound to Euro and deal with the actual currency transfer transaction, thus helping you to transfer funds safely and at the best exchange rates in the UK.

When buying a yacht abroad the usual process is to send a deposit of 10% across and when you are satisfied that the yacht is up to your specification, you send the balance payment.
In between deposit and balance, a surveyor will be employed to give the boat a thorough inspection including rigging, engine, systems and hull survey, they will generally tell you anything that is wrong with the yacht. Don’t be disheartened if the report runs too many pages of faults, most of them are easily rectified; the survey can be a good bargaining tool for a buyer looking to get money knocked off the asking price.

Once you have negotiated a fair price for your yacht then you need to call your money exchange broker and get the final payment arranged. Most Best Exchange Rate providers will allocate an account manager to make sure that your transaction goes smoothly. They will also ensure have protocol in place to ensure that they provide their customers with the best possible rate at the time.

One of the pitfalls encountered can be currency fluctuations between placing a deposit on the yacht and completing on the purchase. If you are buying the yacht in Euros and the rate of exchange drops from 1.200 GBP/EUR down to 1.1400 GBP/EUR then you will be paying an extra 5% to purchase your yacht. In the current market, these fluctuations are all too common

Many money exchange providers can remove this risk, by securing a forward money exchange contract; you would be guaranteed the higher rate on your currency conversion.  If you to secure a rate for your transaction prior to even choosing your yacht.